Surety Bond Encyclopedia

Fuel Tax - Importers Bond - Statewide in Florida

Brief Summary

The Florida importer's bond is the one fuel bond with no ceiling. It equals 60 days of tax on the fuel you bring in, so a busy importer can need far more than the $300,000 that caps every other Florida fuel bond. A surety bond lets you meet that number without parking cash or a letter of credit with the state.

Section 206.051, Florida Statutes, requires a fuel importer to post a bond equal to 60 days of tax liability, or a cash deposit or irrevocable letter of credit in that amount, before the Florida Department of Revenue licenses it. Form DR-156 states there is no maximum bond for an importer's license. The bond is calculated separately for motor fuel and diesel fuel.

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How to Apply for a Fuel Tax - Importers Bond:

Apply for the importer license on Form DR-156, even if you already hold a wholesaler license.
Estimate average daily gallons of each product you will import on Form DR-157W, Table B.
Multiply daily gallons by the applicable tax rate and then by 60 for each product. Do not apply a $300,000 cap.
Have the surety execute Form DR-157 with the importer's bond box checked, one bond per product type.
Submit the application, worksheet and bond to the Account Management Fuel Unit, Florida Department of Revenue, PO Box 5500, Tallahassee FL 32314-5500.
Set up electronic filing and payment, which the Department requires of wholesalers and importers.

Detailed Information About the Florida Fuel Tax - Importers Bond:

No $300,000 ceiling

Most Florida fuel bonds stop at $300,000. The importer's bond does not. Section 206.051, Florida Statutes, requires an importer to establish creditworthiness by posting a bond equivalent to 60 days' tax liability, or by making a cash deposit or providing an irrevocable letter of credit in that amount. The Department of Revenue's Form DR-156 states there is not a maximum bond amount for an importer's license.

How the 60 days are counted

Form DR-157W has importers estimate average daily gallons instead of monthly gallons, on Table B. Daily gallons times the applicable tax rate, times 60, gives the bond. Run the worksheet separately for motor fuel and for diesel fuel, because DR-156 requires a separate bond for each product type.

A wholesaler license does not cover importing

DR-156 defines an importer as a person who has met the requirements of section 206.051 and is licensed by the Department to import motor fuel or diesel fuel upon which no precollection of tax has occurred. The application also says a licensed wholesaler must get a separate license to import or export fuel into or out of Florida. On the Department's cash bond form, DR-157B, this bond is labeled the Importer's Additional Bond.

What the bond allows

Once the security is posted, section 206.051 lets the importer bring fuel in and remit taxes directly to the state. The surety bond is filed on Form DR-157 with the importer's bond box checked, payable to the Florida Department of Revenue on behalf of the State of Florida. Importers file and pay electronically, and the license runs January 1 through December 31 with annual renewal.

Eligibility and Requirements for a Florida Fuel Tax - Importers Bond:

Bond equal to 60 days of tax liability under section 206.051.
No maximum bond amount for an importer's license.
Florida Department of Revenue as obligee on behalf of the State of Florida.
Separate bond for motor fuel and for diesel fuel.
Background investigation of the applicant.
Annual license term of January 1 through December 31.

Florida Fuel Tax - Importers Bond FAQs:

Is the importer's bond capped at $300,000 like the others?

No. Form DR-156 states there is not a maximum bond amount for an importer's license. The bond equals 60 days of tax liability however large that is.

We already hold a wholesaler license and bond. Do we need this one?

If you import fuel, yes. DR-156 says a licensed wholesaler must get a separate license to import or export fuel. The Department's cash bond form, DR-157B, calls this bond the Importer's Additional Bond. Confirm with the Account Management Fuel Unit how your wholesaler and importer bonds should be set up before the bond is issued.

How do we estimate the amount?

On Form DR-157W, Table B, estimate average daily gallons, multiply by the applicable tax rate and multiply by 60. Do this separately for motor fuel and diesel fuel.

Can we use cash or a letter of credit instead?

Yes. Section 206.051 allows a cash deposit or an irrevocable letter of credit in the same amount as the bond. With no ceiling on the amount, a surety bond keeps that capital free for fuel purchases.

What does posting the bond let us do?

Under section 206.051, once the importer has established creditworthiness through the bond, cash deposit or letter of credit, it may import fuels and remit the taxes directly to the state.